Spanish property recovers

The average price of a property in Spain increased by 1.4% last month, according to Spanish property portal Kyero.com. The largest price rises were recorded for larger properties (3+ bedrooms) suggesting that demand from prime property buyers is increasing. The current national average property price in Spain shows a 0.7% increase compared to two years ago (October 2005). Martin Dell, MD of Kyero.com, comments, ?The Spanish property market has had a tough 12 months but we are now seeing prices stabilising and approaching last years levels. Although buyers are still concerned about the possibility of a price crash, our data indicates that the market bottomed-out out during late 2006/early 2007 and we expect prices to remain stable or rise in line with inflation.? The province of Gerona, which occupies the north eastern corner of Spain and the Costa Brava, saw the greatest increase in average property prices this month - rising by 7.2% from ?425,000 in Sept 07 to ?455,750. Mainland Spain appears to have enjoyed property price increases although maybe at the expense of the Balearic and Canary Islands. The latest data revealed that Gran Canaria saw prices fall by 2.6% in the last month (Sept 07 ? Oct 07), prices were down by 16.7% in Mallorca compared to the same time last year and Lanzarote has seen prices decline by 33.1% since October 2005. Overall each size of property (based on the number of bedrooms) saw price increases in the last month, however larger properties (3 bedrooms +) saw the largest rise at 5.9% - possibly indicating an increased demand from affluent buyers.